While much of the real estate industry is still trying to figure out millennials, Generation Z is quickly approaching homebuying age. The oldest members of this budding generation are already graduating college, so learning their habits and preferences will come in handy soon.
This young generation of eager teenagers and young adults seems certain of their desire to purchase a home eventually. Even better, most from Gen Z say they will need a professional real estate agent when they decide to buy a home. They will surely start their search online, but when surveyed, most said that a purchase of this magnitude calls for a professional’s help.
- Generation Z (born starting 1995) already accounts for 21% of the U.S. population
- Gen Z was born into an internet-ready era, but still, values professional expertise and face-to-face interaction
- Gen Z wants to work with real estate agents and will look to referrals from family and friends
- The oldest members of Gen Z have shown a strong desire to live close to work
As Generation Z settles into its homebuying years, agents should take the time to understand this demographic, including its demands and preferences, in preparation for selling its members houses in the near future.
Gen Z is the largest generation. Generation Z already accounts for about 21 percent of the U.S. population—64 million people—and by 2020, this group is expected to outnumber millennials by nearly 1 million people, according to the U.S. Census.
Gen Z wants to buy houses. Though the majority of Gen Z’s members still live at home with their parents, they still have dreams of becoming homeowners. Better Homes and Gardens Real Estate found that 97 percent of Generation Z believe that they will own a home in the future, and 82 percent indicate that homeownership is the most important factor in achieving the American dream.
Gen Z wants to work with an agent. When asked about whether or not they would work with a real estate professional when they purchase a home, Generation Z’s answer was a resounding yes. According to BGHRE, 81 percent of Gen Zers believe they will work with a real estate agent during the home purchase process.
Gen Z is connected. Gen Z was born into a connected, internet-ready era, and they don’t remember a time before smartphones, apps, and social media. Gen Z is mobile-first and expects brands to be as well.
Gen Z wants to live near work. The oldest members of Generation Z choose proximity to work over living in the most desirable neighborhoods. According to the National Apartment Association, they may also seek out co-working spaces or maker’s rooms, as this generation is coming of age in the gig economy where entrepreneurship is high.
What It Means for Agents. Gen Z will look to referrals from family and friends to find a trusted agent during the homebuying process. Expanding your referral network will be equally important to maintaining an active online presence, as Gen Z will still turn to the internet during the initial home search process.
View the original article at Realtor Magazine